Finance. House Financial Services Chairman Barney Frank said today that Congress will pass legislation to subject investment banks to the same federal oversight as commercial banks. "The commercial banks and the investment banks can do similar things, but the commercial banks have a set of rules that the investment banks don't," Frank said on Bloomberg Television's "Political Capital with Al Hunt," to be aired today. "If you don't have the same rules, there's a natural tendency for the place with the weaker rules to undermine the stronger rules." Frank praised Federal Reserve Chairman Bernanke as "the un-Greenspan," saying he has done a better job than predecessor Alan Greenspan regulating the financial-services industry and strengthening consumer protections. "When it came to the need for regulation, both for consumer protection and to prevent the kind of crisis we have now, his ideology got in the way," Frank said of Greenspan. "Bernanke gets it right. He is pushing for it. Not as fast as we'd want it, but he is now doing specific regulation."
This article appears in the May 3, 2008 edition of National Journal Daily PM Update.